PNC Investments, the parent of Dubai developer Sobha Realty, may issue a new sukuk instead of tapping the existing one when it comes due in 2028, a top executive said.

Nikunj Patel, CFO, said in a global investor call last week: “We are at $500 million level. And if we have to do any fundraising, depending on the land acquisitions and our expansion, I think we will do a new issuance, not the tap.”

The luxury developer in September last year reduced the size of an existing $300 million of sukuk by $30 million and went in for a $230 million tap bringing the total to a benchmark sized $500 million.   

Patel said the company was not currently in the market for additional sukuk or eurobond issuance but is monitoring market conditions. "As and when the land bank opportunities come, we might look at raising debt as well," said Patel.

Sobha expects to deliver 3,000 units in 2025 and 6,000 in 2026, with the cash collections expected to further strengthen liquidity.  

(Reporting by Brinda Darasha; editing by Seban Scaria)  

brinda.darasha@lseg.com